Vadim Kotelnikov personal logo Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

 

 

Example of a Lean Value Chain

 

"The man who will use his skill and constructive imagination to see how much he can give for a dollar, instead of how little he can give for a dollar, is bound to succeed." ~ Henry Ford     More Customer Success Quotes

80/20 Principle

10 Golden Rules for Successful Carriers

  • Identify your market and your core customers and serve them best... More

 

How Do You Create Value for the Customer?

Organizations that excel at strategy execution and achieve remarkable results know how to create sustainable value for customers, employees and shareholders. "A feature of such organizations is their ability to define key organizational capabilities that produce observable value to customers. Typical organizational capabilities include:

  • order taking;

  • developing, commercializing, producing, and shipping products;

  • providing advice and service;

  • installing equipment;

  • sending invoices;

  • paying suppliers; and

  • collecting funds."1

How To Create Sustainable Profit Growth: 9 Questions To Answer

Virtual Integration

Action Areas

  • Integrate into customers' operations: To increase customer value-added and differentiate yourself from your competitors, integrate yourself into your customers operations. The more of your customers' work you undertake, the harder it is to find the line that separates you from them... More

Google's 10 Guiding Principles

  1. Focus on the user and all else will follow... More

 

Case in Point

Attributes of Effective Innovation in Silicon Valley

  • Creates customer value through complete solution... More

 

 

Solve Niche Problems with Customized Solutions...

Become an Easy-To-Do-Business-With (ETDBW) Firm...

Creating Value Through Collaboration With Others...

Value Innovation: 2 Fundamental Questions...

 Case in Point  Charles Schwab...

 Case in Point  Ford...

 Case in Point  Dell Computers...

References:

  1. "Strategic Achievement", Andrew Spanyi

  2. "Agenda," Michael Hammer

  3. "Driving Growth Through Innovation", Robert B. Tucker

  4. "Blur: The Speed of Change in the Connected Economy", Davis, S. and Meyer

  5. "Managing Complexity", Robin Wood

  6. "Value Innovation in the eEcomony", Ajit Kambil

  7. "Value innovation: The Strategic logic of high growth", W. Chan Kim and Renee Mauborgne, Harvard Business Review

  8. MIT Sloan Management Review

  9. Customer Feedback: The Key to Creating More Value, Kimberly Carroll

New Definitions of Value

From the customer's point of view, your company exists only to create value for them, to provide them with results.

In the new rapidly changing economy, the focus must be on the way in which the nature of value is changing, involving new ways to price goods, innovation and emotion. The implication of these new forms of exchange is a transfer of power from the producer to the customer. There are multitudes of values present in every buyer-seller exchange: economic, informational and emotional.4 These exchanges increasingly happen so fast that there is no time to translate them into precise monetary terms. Businesses will need to identify these hidden values and think more accurately about their worth before accepting the price proposed. The implications are profound. Companies will need to think in terms of offers, which involve merging products and services to exploit their knowledge to give customers a value-added experience, not just "selling them stuff."5

Value Innovation

Why do some companies achieve sustained high growth in both revenues and profits? In a five-year study of high-growth companies and their less successful competitors, researchers7 found that the answer lies in the way each group approach strategy.

Competitive Strategies: 2 Types

Blue Ocean vs. Red Ocean Strategy

The difference in approach was not a matter of managers choosing one analytical tool or planning model over another. The difference was in the companies' fundamental, implicit assumptions about strategy. The less successful companies took a conventional approach: their strategic thinking was dominated by the idea of staying ahead of the competition. In stark contrast, the high-growth companies paid little attention to matching or beating their rivals. Instead, they sought to make their competitors irrelevant through a strategic logic called value innovation... More

 

 Case in Point  Google's 9 Notions of Innovation

"I used to call this 'Users, Not Money.' We believe that if we focus on the users, the money will come. In a truly virtual business, if you're successful, you'll be working at something that's so necessary people will pay for it in subscription form. Or you'll have so many users that advertisers will pay to sponsor the site," says Marissa Mayer, a Google's Top Manager... More

Innovation Is Love

Innovation is actually a very simple phenomenon.

Innovation is about Love: do what you love to do and love your customers... More

 Case in Point  Ten3 Business e-Coach

With customer care at heart, Ten3 Business e-Coach creates unique customer value: It doesn't teach, it inspires. It helps people and companies unlock their inner creative power and achieve amazing results. That's why Ten3 Business e-Coach and Ten3 Mini-courses are so popular. People and companies from 100+ countries buy them.

Below are some unsolicited "Thank You!" notes that illustrate the value Ten3 Business e-Coach creates for people like you:

● "I read your webpage and bells started ringing for me!" Zachrey Helmberger, USA

● "It produces a 'bomb effect'!" Mikael Henzler, Germany

● "It is boosting my creativity!" Udaysinh Patil, India

Would you like to read more unsolicited "Thank You!" notes? There are plenty of them here.

Establish a Process-managed Enterprise

First of all, you must overcome traditional functional thinking and obsess about the end-to-end enterprise business processes (EBP) that create all value for your customers... More

Value Chain Management

Making breakthrough improvements in your value chain requires out of the box, cross-functional, systems thinking.  You have to see the value creation process across the entire flow of work, not just single points... More

Continuous Improvement Firm (CIF)

Kaizen Mindset

CIF is a firm continuously improving on customer value due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs... More

 Case in Point  Toyota

The fundamental reason for Toyota's success in the global marketplace lies in its corporate philosophy the set of rules and attitudes that govern the use of its resources. Toyota have successfully penetrated global markets and established a world-wide presence by virtue of its productivity. The intent implicit in the Toyota Production System is to stimulate people to think constantly a "self-running, self-improving" system. Everyone, not just managers, can see what's happening. Every problem prompts why questions. Empowered workers can solve problems at a very detailed level. A lean learning culture permeates the entire company. Customer value creation and customer satisfaction results from enterprise-wide performance... More

The Seven Dimensions of Strategic Innovation

Core Technologies and Competencies is the set of internal capabilities, organizational competencies and assets that could potentially be leveraged to deliver value to customers, including technologies, intellectual property, brand equity and strategic relationships... More

 

Apply the 80/20 Rule

The 80/20 Principle states that 80% of your results come from 20% of your efforts and activities and that the progress means moving resources from low-value to high-value uses. Look through your list of ideas and circle the 20% that will yield 80% of the results you are looking for... More

Product Innovation

Product/service innovation is the result of bringing to life a new way to solve the customer's problem  through a new product or service development that benefits both the customer and the sponsoring company.3... More

Process Innovation

Process innovations increase bottom-line profitability, reduce costs, improve efficiency, raise productivity, and increase employee job satisfaction. They also delivers enhanced product or service value to the customer... More

Customer Intimacy a New Way of Doing Business

Customer-intimate companies develop a new mindset a new way of doing business with new values, new vision, new strategies, new systems, and new structures. They are in the business of creating new value for their customers. They discover unsuspected problems, detect unrealized potential, and create a dynamic synergy with customers... More

 Case in Point  Amazon.com

New business model developed by Amazon.com creates value for customers by offering a synergistic combination of the following benefits:

  1. Shopping convenience

  2. Ease of purchase

  3. Speed

  4. Decision-enabling information

  5. A wide selection

  6. Discounted pricing

  7. Reliability of order fulfillment.

No single aspect of Amazon.com's business model is sufficient to create a sustainable competitive advantage. It is the synergistic combination of all of these information services and logistical processes that creates value for customers and comprise Amazon.com's competitive advantage... More

Customer Value Proposition

Your company should deliver a particular customer value proposition to a definable market in order to exist. Competition is all about value: creating it and capturing it... More